CASE COMMENT : DISTRIBUTION - FRANCHISE - NON-COMPETITION - NON-REAFFILIATION CLAUSE

Franchise - Non-reaffiliation clause: The Court of Cassation rules that the non-reaffiliation clause limited in time and space and not prohibiting the continuation of an "identical" activity is valid (Varassedis/Prodim)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. Court of Cassation, Commercial Chamber, 17 January 2006, Appeal No. 03-12.385, Société Varassedis v. Société Prodim Facts A Shopi franchisee changed its name after unilaterally terminating its franchise agreement. The agreement contained a non-reaffiliation clause under which the franchisee could not, for three years after the end of the contract, affiliate with a nationally or internationally renowned brand within a geographical area of five kilometres. The trial judges ordered the franchisee to pay damages for breach of the non-reaffiliation clause. The

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  • University of Montpellier

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Didier Ferrier, Franchise - Non-reaffiliation clause: The Court of Cassation rules that the non-reaffiliation clause limited in time and space and not prohibiting the continuation of an "identical" activity is valid (Varassedis/Prodim), 17 January 2006, Concurrences N° 2-2006, Art. N° 27763, www.concurrences.com

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